Hi Everyone,
I've heard about this method a few years back called a 1031 Exchange in America. The following is a brief outline:
Overview: Real estate owners or investors expecting to acquire property subsequent to the sale of existing property can indefinitely defer income taxes by utilizing a 1031 exchange. In a typical property sale, an owner has to pay taxes on any gain. In a properly executed Section 1031 exchange, the realized tax is deferred. These transactions are sanctioned under Section 1031 of the Internal Revenue Code and are often referred to as "1031 exchanges," "Like-kind exchanges" or "Tax-deferred exchanges".
Source: http://jobfunctions.bnet.com/abstract.aspx?kw=1031&docid=346982
Is this applicable in Australia?
Thanks!
no
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
freelance2020 wrote:Hi Everyone,I've heard about this method a few years back called a 1031 Exchange in America. The following is a brief outline:
Overview: Real estate owners or investors expecting to acquire property subsequent to the sale of existing property can indefinitely defer income taxes by utilizing a 1031 exchange. In a typical property sale, an owner has to pay taxes on any gain. In a properly executed Section 1031 exchange, the realized tax is deferred. These transactions are sanctioned under Section 1031 of the Internal Revenue Code and are often referred to as "1031 exchanges," "Like-kind exchanges" or "Tax-deferred exchanges".
Source: http://jobfunctions.bnet.com/abstract.aspx?kw=1031&docid=346982
Is this applicable in Australia?
Thanks!
There are certain "roll-overs" in the tax law, which provides for a similar tax outcome but the roll-overs are limited to very specific circumstance, eg, a small business selling its premises and buying a replacement property, matrimonial breakdown, etc. In general, these roll-overs are not available to every day buy/sell transactions between arm's length parties.
Eddie
[email protected]Thanks for that Eddie
I should have done a search before posting this question in the first place as many have already asked.
My memory was jolted and got too excited before researching.
Thanks guys
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